I filter false signals by weighting it among the other indicators I mentioned where they have to meet certain criteria in conjunction with all of them.
The time frame is the secret and also depends on your time frame for trading. I don't use it at all for day trading and rely on the TICK, TRIN, Bollinger Bands and Premium when trading OEX etc. For swing trading 1-3 day trades, I use a relatively fast Stochastic but the number is the key ( remember you can use decimals ) <ggg>.
I think posting our buy and sell signals based on your original time frame of one trade a day post at the futures thread would give a good read as to what everyone's systems are saying as to direction. In other words, some are short some are long some are flat, the buy in comes that day then the next day either is higher, lower etc so who would have done OK, who would have lost etc. If you are wrong, why did your system give the wrong signal when other's were correct. It would provide a written history of your system so you could track how it did. We just have to decide what we are going to be hypothetically trading. S$P Futures, SPX, OEX, DOW etc.
Example, my system gave a buy signal on the SPX and OEX last Wednesday for a buy in on Thursday and has not issued a sell yet. However I know my system does not always trigger in time and due to the trade imbalance report Tuesday, I would be going flat tomorrow on the close if I were able to trade ( I had to go back to work and feel the market is too volatile right now to trade indexes and turn my back so I am all cash again)
My signals can be seen on my charts at my site and are the dots and diamonds over the daily prices.
Good Luck,
Lee |
